Revisiting the cost and complexity of the most popular FEHBP plan

With the idea of expanding the Federal Employees Health Benefits Program (FEHBP) now in the news, it makes sense to revisit an earlier paper about cost and complexity in health plans, which includes analysis of the most popular FEHBP plan. For example, consider the range of costs among different health plans:

Plan Design

PMPM Value*

Ratio to MMI PPO**

MMI PPO

$275

1.00

Alternate PPO

$214

0.78

HMO-style plan

$317

1.15

Most popular FEHBP plan

$285

1.04

HDHP

$141

0.51

*For the United States as a whole and a demographic cross-section of the labor force population (including spouses and dependent children).
**This paper uses the plan design employed in the Milliman Medical Index as a baseline for comparison.

Read the full paper here.

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